New Oregon Labor and Employment Laws in 2025 and 2026

Oregon’s 2025 legislative session produced a series of notable labor and employment changes, with more set to take effect in 2026. For employers, HR teams, and employees across the state, these updates will influence hiring, payroll, dispute resolution, and collective bargaining dynamics. They also signal how lawmakers expect workplaces to operate over the next few years.

At Johnston Law Firm, we follow these shifts closely. Thus, below is a “plain-English” overview of key statutes that were enacted in 2025 and scheduled into 2026, with insight on what they mean in day-to-day terms.

What Changed or Will Soon Change: Six Laws Oregon Employers and Employees Should Know

Liability for Property Owners in Construction Wage Cases (SB 426)

Beginning January 1, 2026, Oregon will hold property owners and direct contractors jointly and severally liable for unpaid wages owed to “unrepresented employees” of the direct contractor and subcontractors at any tier on covered construction projects. The law is designed to combat wage theft by creating a financial backstop higher up the contracting chain, so workers are not left empty-handed if a lower-tier subcontractor fails to pay.

SB 426 contains important contours. The statute empowers owners and direct contractors to seek recovery from the responsible subcontractor for amounts they had to pay, including certain damages and attorney fees. It also includes carve-outs such as work performed on an owner’s principal residence and some small properties, among other specifics. The takeaway is simple. Owners and general contractors will want to tighten prequalification, contract language, payroll documentation flow, and pay-application procedures now, rather than after a dispute surfaces in 2026.

Age Discrimination in Hiring: Limits on Asking for Age and Graduation Dates (HB 3187)

Starting in late September 2025, employers, prospective employers, and employment agencies are prohibited from requesting an applicant’s age, date of birth, or the dates of attendance or graduation from any educational institution before an initial interview is complete, or before a conditional job offer if there is no interview. Limited exceptions apply when a law requires the information or when it is necessary to confirm a bona fide occupational qualification. Employers should review application forms, career site fields, and background-screening workflows to ensure they no longer ask for disallowed information at the wrong stage.

HB 3187 also addresses other age-related issues in Oregon law. Commentaries from employment counsel note the bill removes certain apprenticeship age barriers and reinforces that Oregon’s anti-discrimination protections apply to individuals 18 and older. Updating recruiter training and third-party vendor instructions is a smart step, since a well-meaning “what year did you graduate” question can now create legal exposure.

Statute of Limitations When a BOLI Charge Is Filed, and BOLI’s New Employer Assistance Division (HB 2957 and HB 2248)

Oregon clarified timelines for filing civil actions after a complainant receives a “right-to-sue” notice from the Bureau of Labor and Industries. Under HB 2957, the strict 90-day deadline is replaced with a tiered framework that ties the filing window to how much time remains on the applicable statute of limitations at the moment the notice is issued. If 90 days or less remain, the complainant has 90 days to sue. If more time remains, the lawsuit must be filed before the limitations period expires, and other timing rules apply in specific scenarios. The law took effect June 24, 2025. This is a real shift for both sides of a case and affects litigation strategy and record retention.

The legislature also created BOLI’s Employer Assistance Division through HB 2248. The division provides education, training, and interpretive guidance, including advisory opinions, to help employers comply with laws BOLI enforces. Notably, if an employer can prove it relied in good faith on discussions with that division, BOLI is barred from imposing a penalty for actions taken in reliance. The effective date is September 26, 2025, which gives organizations time to plan how they will use this new resource.

Unemployment Insurance for Striking Workers (SB 916)

Oregon enacted unemployment insurance benefits for striking workers, effective January 1, 2026. Eligible workers can receive up to ten weeks of benefits with a two-week waiting period. This is unprecedented in one respect. Oregon is the first state to extend benefits to eligible striking public employees, not just private sector workers. The law also addresses fiscal concerns by directing school districts to recoup UI benefits from employees’ future wages in specified situations. Employers and unions alike will want to account for this new factor in bargaining strategies and contingency planning.

The policy change followed intense debate and multiple amendments that narrowed benefit duration and timing before passage. If your organization is subject to labor disputes, revisit strike plans, budgeting, and communication templates now. Employees who may be affected should understand eligibility requirements and the practical timelines for any benefits to begin.

Oregon Sick Leave Use for Blood Donation (SB 1108)

Beginning January 1, 2026, Oregon workers may use accrued sick time to donate blood through a voluntary program approved or accredited by the American Association of Blood Banks or the American Red Cross. The amendment fits within the state’s existing paid sick leave structure and clarifies that blood donation is a permitted use, which should be reflected in policies and manager training. Employers should make sure HRIS and time-keeping systems can track this leave and that handbooks are updated before year end 2025.

In practice, this change is straightforward. Employees who want to participate in community blood drives do not have to choose between donating and losing wages or benefits for that time. Employers benefit from clear rules and a healthier workforce, and they can promote on-site events without compliance ambiguity.

How These Laws Connect to Real-World Disputes and Your Rights

None of the laws above directly alter Oregon’s workers’ compensation framework or the threshold for job-related injury claims. They do, however, shape the landscape around those claims. For example:

• Hiring compliance affects who gets in the door and how evidence is created. 
• BOLI’s new timing rules and advisory guidance can influence how quickly employment disputes resolve or move to court. 
• Construction wage liability may intersect with third-party negligence issues on complex projects. 
• Strike-related unemployment benefits can change leverage during labor disputes that sometimes coincide with safety or staffing concerns.

At Johnston Law Firm, we meet clients at the moment a problem becomes personal. Our role is to gather facts, explain options in plain language, and move quickly when medical bills, lost wages, or insurance coverage disputes threaten a family’s stability. We prepare every case as if it could be tried, and we combine that preparation with a steady, practical presence that helps clients navigate stressful moments with confidence.

Have You or a Loved One Sustained a Workplace Injury? Contact Johnston Law Firm Today

Work injuries can upend a household overnight. While the new employment laws listed above do not change workers’ compensation statutes, they add context to how employers manage risk and how disputes unfold. If you were hurt on the job or if a third party’s negligence contributed to your injuries, our team can help you understand the path forward and protect your rights from the start.

Johnston Law Firm serves clients throughout Oregon, from Portland and Gresham to Bend, Eugene, Hood River, and the Coast. We bring thorough preparation, practical strategy, and persistent advocacy to each case. If you need guidance after a work injury or an employment-related harm, call us for a free consultation. We are ready to listen, explain your options, and pursue the full and fair result you deserve.